Apollo, Lazard team up in Europe

Apollo Management and the Lazard Group have formed a partnership to make European private equity investments, the firms announced earlier this month.

In a brief press release, the firms said: “The strategic partnership will leverage both Lazard’s European presence and history of advising on merger and acquisitions transactions, and Apollo’s strong track record in private equity.”

Separately, Apollo and Lazard will continue to work with other financial advisory and private equity firms, respectively, in the ordinary course of business.

What is unclear is exactly how this partnership will clear up any potential conflicts of interests, say, for example, if Lazard becomes a significant limited partner in a dedicated European fund. The firms described the arrangement as a “non-exclusive partnership.”

A source close to Apollo says that the partnership is still a “work in progress,” but that both firms will have dedicated teams on the ground in London. The idea is that Apollo will provide private equity know-how, while Lazard will provide advisory services.

No word yet on if investments will come out of Apollo’s current buyout fund, which stands at more than $14 billion, or from a new vehicle.

In separate Apollo news, the firm recently amended its S-1 filing with the Securities and Exchange Commission. The most significant change is a 7.5 million increase in the number of shares being registered in the firm’s proposed IPO. The shares are owned by Credit Suisse Management, and the revamped offering ups the proposed IPO from about $417 million to about $522 million.